What is Programmatic Advertising and how does it work? This talk by Webrepublic's Tech Lead Dorian Kind explains the basic principles and discusses the importance of creatives, media buying and tracking in a shifting advertising world. The talk was given at the University of Zurich on November 4, 2016.

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Programmatic Advertising
University of Zürich — 4. November 2016
Dorian Kind
Technology Lead @ Webrepublic

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What Is Programmatic?
Programmatic Buying
describes all digital
advertising where demand
and supply of ad space is
connected automatically.

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What Is Programmatic?
As we automate, as technology advances
through machine learning, and things just
become better, faster and more proficient, we
can actually start to identify things in real time,
make changes to our campaigns and achieve
better results as a consequence.
That’s a huge opportunity.
— Rob Moore, Roadshow Films Programmatic Summit 2016
✭

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Enter Programmatic
Up until not too long ago, a large part of
advertising was about having the right access
to the right people. Human-to-human
interaction defined the market.
With the advent of the internet, marketers
quickly determined that a new channel for
advertising was born.
Available ad space eventually outgrew media
buyer’s capabilities.
✭

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Enter Programmatic
First advertising techology solutions came
into existence.
Publisher-Advertiser interaction was being
increasingly automated.
Ad networks and exchanges moved from
leftover inventory dump to a place where
every impression is being auctioned off the
exact millisecond it happens.
✭

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A Programmatic Ecosystem✭

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The Life of an Impression
A user visits a web site where an ad space is waiting to be filled✭

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The Life of an Impression
This ad space is being managed by the publisher’s ad server,
collecting signals about this particular visit.
✭

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The Life of an Impression
A supply side platform (SSP) collects the impression, bundles it with
other signals and offers the ad impression to an ad exchange.
✭

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The Life of an Impression
Advertiser employ Demand Side Platforms (DSP) that have the
opportunity to bid on the ad impression if its signals are relevant for
the advertiser’s targeting.
✭
€€€€
€
€€

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The Life of an Impression
After the auction is over, the winning advertiser’s creative is served
from its ad server to the visitor
✭

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Signals, Lots of Signals
Demographic CRM Data Web Analytics Social (YouTube)Interests

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THE PROGRAMMATIC
PYRAMID PITCH

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CREATIVES
MEDIA BUYING
TRACKING & DATA

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CREATIVES
MEDIA BUYING
TRACKING & DATA

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Recap: What Is My Advertising Goal?
My target audience should SEE my ad
My target audience should CLICK my ad
My target audience should KNOW my brand
My target audience should SIGN UP
My target audience should BUY something
My target audience should be CUSTOMER forever

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My target audience should SEE my ad
My target audience should CLICK my ad
My target audience should KNOW my brand
My target audience should SIGN UP
My target audience should BUY something
My target audience should be CUSTOMER forever
SEXYNESS
Recap: What Is My Advertising Goal?

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Tracking Interactions on Websites

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Measuring Brand Searches
BRAND AWARENESS

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All Campaign Data Is Centrally Tracked
ADSERVER
Performance
Data on Unique
User Level
DISPLAY SEARCH NEWSLETTERVIDEO SOCIAL MEDIA
Goals:
- Visibility
- Clicks
- Leads
- Sales

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Consolidated Reporting
VIDEO DISPLAY SOCIAL

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The Advertising Journey
Display Ad Impression
Premium Placement
Video View
YouTube
Social Media Click
Facebook
Click on Retargeting Ad
Display Ad Exchange
CAMPAIGN
GOAL

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CREATIVES
MEDIA BUYING
TRACKING & DATA

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Demand Side Platform
Unified and Real Time:
Goal Optimization
Targeting
Bidding
Budgeting
Frequency

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Cherry Picking Impressions
USER INTERESTED
IN COOKING
USER NOT INTERESTED
IN COOKING
RESERVED BUY
(the old way)

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Switzerland Is (Mostly) Programmatic

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70%UK
65%US
15%CH
25%DE

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Why Programmatic?
Find your audience
across multiple
channels.
Only pay for ad impressions
generated by your target
audience.
✭

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Why Programmatic?
Optimize for your
campaign goal
in real time.
Change your media plan
in an instant if needed.
✭

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Why Programmatic?
Pay transparent and
competitive prices.
Programmatic CPMs are often
cheaper - for the same inventory.
✭

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Example: Ideal Frequency Capping
4.80
5.79

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CREATIVES
MEDIA BUYING
TRACKING & DATA

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Rich Media: Big and Bold Formats

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Storytelling Across Creatives

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Changing Creatives Based On Weather

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CREATIVES
MEDIA BUYING
TRACKING & DATA

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Bold formats, storytelling
and dynamic elements
Data-driven and efficient media
buying across platforms
Smart goal tracking & unified reporting

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PITFALLS AND
DANGERS

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Not All Is Well In Programmatic Land
Ad fraud is wasting
billions of advertisers’
money
Fake clicks, impression fraud✭

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Nobody really knows
which impressions are
actually seen
Google: 56% of ad impressions
are never seen
✭
Not All Is Well In Programmatic Land

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People seem to be
quite fed up with
display ads
Usage of ad-blocking tools on
the rise since years
✭
Not All Is Well In Programmatic Land

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